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A hospital clinic anticipates seeing 240 patients in a year. Of those patients, 120 are oncology, 80 cardiac and 40 rhinoplasty. The hospital's standard charges are $50,000 per oncology patient, $40,000 per cardiac patient and $25,000 per rhinoplasty patient. The hospital's payer mix is as follows:
Procedure Private Insurance Medicare/Medicaid Self-Pay
Oncology 30% 50% 20%
Cardiac 20% 60% 20%
Rhinoplasty 10% 20% 70%
The amount the hospital receives depends on whether patients pay their own bills or have health insurance of some type. Assume that private insurance companies will pay 80% of the full hospital charges for each type of service. Medicare/Medicaid will pay the following for each type of procedure: Oncology patients, $40,000, Cardiac patients $30,000, Rhinoplasty $10,000. Self-pay patients pay the full charge but generally 25 percent of self-pay charges become bad debt.
Prepare a revenue budget for 200X for the hospital clinic based on the information given above (Note: only calculate the revenue portion since no expenses have been given to you).
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